One Response to “Private Personal Loans”

No you should not. What you’re suggesting is called a Preferential Payment (paying some of your creditors before you file, but not all of your creditors). If you do this your trustee will be required to contact the people you have repaid to ask for the money to be returned. If it is not returned you will likely have to pay an amount equal to what you already paid to your family and friends to all of your other creditors.

What your suggesting may seem like a good idea, but it can complicate your bankruptcy and end up costing you a lot of money.